Trump Orders Federal Agencies To Halt Infrastructure Funding

by Angie SchlagerJanuary 25, 2025, 11:06 pmNews >

President Donald Trump signed an executive order to “immediately pause the disbursement of funds” passed under his predecessor Joe Biden‘s infrastructure law.

“Congress passed landmark infrastructure and climate investments, and now President Trump is attempting to illegally withhold that money from American businesses, communities, and workers,” Rep. Frank Pallone (D-New Jersey) said.

The order calls for federal agencies to pause financial disbursements provided by landmark federal climate and energy laws passed by Biden while they “review their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law.”

Funds from the Inflation Reduction Act and Bipartisan Infrastructure Law will be halted through the executive order on “Unleashing American Energy.” The agencies must report to the Office of Management and Budget director how freezing the funding for 90 days has supported the Trump administration’s energy goals.

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The bipartisan infrastructure law, under the Infrastructure Investment and Jobs Act, provides the Federal Transit Administration with $108 billion to fund programs that improve the safety, accessibility, modernization and climate impact of public transportation.

It is uncommon for executive orders to declare federal agencies halt spending, especially for congressionally mandated programs.

A pause on disbursements could cause major difficulties in ongoing projects on roadways and bridges and efforts to combat climate change.

Trump could even go beyond blocking congressionally approved spending if he refused to uphold the federal government’s promises in preexisting contracts.

Sen. Mike Crapo (R-Idaho) believes that Trump’s call for the pause should be taken at its word: just a pause. “I think he’s just pausing it right now. That doesn’t mean the payments aren’t going to be made,” Crapo said. He added that it is a “concern”, but is unsure how “big a concern” it will be.

Trump will soon have to answer the question of whether he will honor the federal government’s obligations that Biden created with his $1.6 trillion laws to address carbon pollution, restore U.S. manufacturing, rebuild roads and bridges and improve advanced chip technology.